Sen. Herb Kohl, D-Wis., complained to Verizon about its decision to end standalone...
Sen. Herb Kohl, D-Wis., complained to Verizon about its decision to end standalone DSL services for retail customers, which was effective May 6. Kohl is concerned that poses potential harm to competition and consumers, and speculated that the decision stems…
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from Verizon’s deal to purchase AWS spectrum licenses, he wrote General Counsel Randal Milch. Kohl noted that the company’s decision to discontinue standalone retail DSL service “appears to contradict” Milch’s testimony during a recent Senate Antitrust Subcommittee hearing (CD March 22 p1). At the hearing, Milch told Kohl that “no one is constrained to buy it in these bundles” and “there’s nothing to get from this bundle other than a convenience or a discount of some sort that the consumer can choose or not choose.” It now “appears inconsistent for Verizon to argue, on the one hand, that the joint marketing arrangements and bundling wireless services with cable offerings increases customer choice, while on the other hand the company is tying voice and DSL services, compelling consumers to purchase bundled offerings,” Kohl said Thursday. He asked Milch 12 questions related to the matter that specifically questioned the rationale behind the company’s decision to discontinue its DSL service and whether it was indeed connected to the company’s AWS joint marketing agreement with the SpectrumCo joint venture of three cable operators, and with Cox Communications. Verizon “is reviewing the letter and will respond to Senator Kohl’s questions appropriately,” a spokesman said. The telco made its DSL decision to meet “the needs of our customers” and “control our cost structure more effectively,” he said. “The vast majority of our DSL customers enjoy it as part of a bundle with reliable home voice and TV service. By bundling, customers receive a better overall experience and value by having multiple services as part of a package.” There will be no changes in service for all existing DSL customers, the spokesman said.